By Connie Thiessen
Stingray announced after market close Tuesday that it’s entered into a definitive agreement to acquire live audio streaming and ad monetization platform, TuneIn.
TuneIn currently boasts over 75 million monthly active listeners worldwide, providing access to more than 100,000 radio stations, podcasts, music channels, news, sports, and audiobooks. Its content is distributed across more than 200 platforms and connected devices, including over 50 in-car audio systems, in over 100 countries.
The transaction is valued at up to USD $175 million, based on TuneIn’s forecasted sales of $110 million. Stingray will pay USD $150 million at closing and up to $25 million 12 months following the closing. The Montreal-based digital audio company has secured an additional USD $150 million term loan under a renewed credit facility to finance the transaction.
Stingray says the acquisition will significantly expand its global digital audio footprint, accelerate its streaming service growth and bolster its advertising offering by incorporating TuneIn’s targeted audio, video and display ad solutions platform.
“This acquisition marks a pivotal moment in Stingray’s journey to further strengthen its position as a global leader in audio entertainment and digital advertising sales,” said Stingray president and co-founder Eric Boyko. “We are crafting an unmatched audio ecosystem by merging Stingray’s extensive technology infrastructure and content distribution capabilities with TuneIn’s expertise in monetization, advertising technology, and diverse content offerings. We’re particularly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integrations with leading manufacturers. This aligns perfectly with our strategy to meet listeners wherever they are – at home, in the car, or at retail locations. Together, we are poised to redefine audio for a connected world, delivering extraordinary value to our listeners, content partners, and advertisers.”
Stingray says the acquisition solidifies its position in the rapidly growing digital audio advertising market, pushing the combined entity’s pro forma revenue beyond USD $400 million (CDN $560 million).”
“Stingray is the ideal partner to propel TuneIn’s next chapter of growth,” said Richard Stern, co-chairman and CEO of TuneIn. “Our global reach and advanced advertising capabilities, combined with Stingray’s audio and video distribution, creates a significant growth opportunity for both our companies. Joining forces with Stingray allows us to accelerate our mission of delivering the world’s best audio content to listeners everywhere, while creating powerful new avenues for advertisers to connect with a highly engaged audience.”
Subject to approval from TuneIn’s shareholders and other regulatory hurdles, the acquisition is expected to close by year-end. Following the acquisition, the TuneIn platform will continue to operate under its existing brand.
The news comes as the company reports its latest quarterly earnings and follows its announced acquisition late last month of DMI, a U.S.-based branding and in-store audio advertising platform. That acquisition extends the company’s retail media network by roughly 8,500 locations in the United States for a total of 33,500 locations on the continent.
“The acquisition comprises DMI’s prestigious client portfolio, including a large national pharmacy chain,” Stingray said in a release. “It also makes Stingray the definitive leader in in-store audio advertising for the U.S. pharmacy sector with its network now covering the two largest pharmacy chains in the country, as well as other major pharmacy retailers.”
With a file from Ahmad Hathout
